Dual main themes of domestic computing power and liquid cooling materials: Unisplendour advances supernodes and cpo, while Huaguang Advanced Welding Materials benefits from an explosion in liquid cooling revenue
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Dual main themes of domestic computing power and liquid cooling materials: Unisplendour advances supernodes and cpo, while Huaguang Advanced Welding Materials benefits from an explosion in liquid cooling revenue
The report mainly recommends Unisplendour and Huaguang Advanced Welding Materials; the former benefits from leading switch market share and breakthroughs in supernode and cpo products, while the latter benefits from volume growth in liquid cooling plate welding materials and raised earnings forecasts.
- H3C, the controlling subsidiary of Unisplendour, recorded 2025 revenue of RMB 75.981 billion, up 37.96% year on year, and net profit of RMB 3.151 billion, up 12.30% year on year.
- Unisplendour ranked first in China's enterprise network switch market with a 36.1% share, second in China's Ethernet switch market with a 34.5% share, and second in China's data center switch market with about a 33.1% share.
- Unisplendour has launched the UniPoD S80000 supernode product. Its 51.2T cpo silicon photonics data center switch has completed interoperability validation with multiple suppliers' 800G optical modules and test instruments, and has passed strategic customer poc testing.
- Huaguang Advanced Welding Materials posted 2025 revenue of RMB 2.56 billion, up 33.3% year on year; net profit attributable to the parent was RMB 188 million, up 133.3% year on year.
- Huaguang Advanced Welding Materials' 2025 liquid cooling revenue accounted for more than 5% of total revenue and exceeded RMB 130 million; 25H2 liquid cooling revenue was about RMB 100 million, up about 200% from the first half.
Report interpretation
Overview
This is a company-focused hotspot research report commentary centered on two main lines in the data center industry chain: first, Unisplendour's domestic computing power positioning in switches, supernodes, and cpo silicon photonics data center switches; second, Huaguang Advanced Welding Materials as a scarce upstream welding materials play for liquid cooling plates, benefiting from rapid volume growth in liquid cooling product revenue.
Core views
Core views include: through H3C, Unisplendour maintains relatively high market share in switches, servers, wlan, and other fields, while advancing products such as the UniPoD S80000 supernode, 800G domestic-chip intelligent computing switch, and 51.2T cpo silicon photonics switch, supporting the coordinated development of computing power and connectivity; Huaguang Advanced Welding Materials achieved high revenue and profit growth in 2025, with liquid cooling products—especially precision solder sheets for cold plates—becoming a growth driver, while the higher revenue contribution from electronics led to upward revisions in earnings forecasts.
Analysis framework
The report mainly uses a combination of company earnings breakdown, product progress tracking, market share comparison, revenue structure estimation, and earnings forecast adjustments to assess the extent to which the two companies benefit from ai data center infrastructure localization and the liquid cooling industry chain.
Methodology notes
Assess the company's future growth and valuation level based on indicators such as operating revenue, net profit attributable to the parent, eps, and pe.
For Unisplendour, the report provides 2026-2028 forecasts for net profit attributable to the parent and pe; for Huaguang Advanced Welding Materials, it raises 2026-2027 revenue and profit forecasts and adds a new 2028 forecast.
Judge competitiveness through core product share, R&D milestones, poc testing, and mass-delivery progress.
Unisplendour's switch market share, supernode launch, cpo switch interoperability validation, and small-batch shipment capability are the main validation bases.
Identify new growth curves through business-line and phased revenue contribution as well as sequential changes.
Huaguang Advanced Welding Materials' liquid cooling revenue expanded significantly in the second half of 2025, becoming an important explanatory variable for the strong earnings growth.
Asset mapping & comparison
Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).
- Unisplendour（000938.SS）Core beneficiary play in domestic computing power infrastructure and data center networking equipment
- Strengths
- Products such as switches, wlan, and x86 servers hold leading market shares in China; H3C posted strong revenue growth and continues to advance in supernodes, 800G switches, and cpo silicon photonics switches.
- Weaknesses
- The high-end products disclosed in the report are still in stages such as R&D, poc, small-batch shipments, or interoperability validation, and their large-scale contribution remains to be seen.
- Comparison
- Compared with the traditional server-stacking model, the supernode solution emphasizes high-density integration and high-speed interconnection, which may better fit ai computing cluster needs.
- Risks
- Risks from technological innovation and product iteration, domestic computing power demand falling short of expectations, and intensifying competition.
- Huaguang Advanced Welding Materials（688379.SS）Beneficiary play in upstream welding materials for liquid cooling plates and precision solder sheets for cold plates
- Strengths
- Rapid revenue growth for 13 consecutive quarters, explosive liquid cooling revenue in 2025, more than 110% growth in electronics revenue, and smooth progress in products such as precision solder sheets for cold plates and solder paste.
- Weaknesses
- The share of liquid cooling revenue is still in a rising stage, and earnings are sensitive to the pace of downstream ai liquid cooling volume growth and customer onboarding.
- Comparison
- It has scarcity in the upstream materials segment for liquid cooling plates; unlike downstream whole-machine or cooling system companies, it is more leveraged to materials and process benefits.
- Risks
- Raw material cost fluctuations, liquid cooling demand growth falling short of expectations, and product industrialization progress falling short of expectations.
- 002926.SSThe text does not provide a clear investment theme or company name; it appears only in entity recognition.
- Strengths
- Insufficient evidence.
- Weaknesses
- Lack of support from the main text discussion.
- Comparison
- Cannot be effectively compared with Unisplendour and Huaguang Advanced Welding Materials.
- Risks
- There may be noise in entity extraction; the original text and stock mapping should prevail.
Key data
- Unisplendour H3C 2025 revenue759.81亿元Up 37.96% year on year.
- H3C 2025 net profit31.51亿元Up 12.30% year on year.
- Unisplendour China enterprise network switch market share36.1%No. 1 market share.
- Unisplendour China Ethernet switch market share34.5%No. 2 market share.
- Unisplendour China data center switch market share约33.1%No. 2 market share.
- Unisplendour 2026-2028 net profit attributable to the parent forecast21.76/27.79/35.73亿元Corresponding year-on-year growth of 29%/28%/29%, with pe of 36.29/28.42/22.10x.
- Huaguang Advanced Welding Materials 2025 revenue25.6亿元Up 33.3% year on year.
- Huaguang Advanced Welding Materials 2025 net profit attributable to the parent1.88亿元Up 133.3% year on year.
- Huaguang Advanced Welding Materials 25Q4 revenue7.3亿元Up 33.8% year on year, a record high for a single quarter.
- Huaguang Advanced Welding Materials 2025 liquid cooling revenue超过1.3亿元More than 5% of full-year revenue; second-half revenue was about RMB 100 million, up about 200% from the first half.
- Huaguang Advanced Welding Materials 2026-2028 revenue forecast39.1/51.7/65.8亿元There are OCR differences between the text and the table; retained according to the forecast basis in the main text.
- Huaguang Advanced Welding Materials 2026-2028 net profit attributable to the parent forecast2.5/3.4/6.1亿元There are OCR differences between the main text and the table; the original report should prevail.
Impact & implications
If ai data center construction, domestic computing power infrastructure, and liquid cooling penetration continue to improve, Unisplendour is expected to gain incremental orders in switches, supernodes, and cpo interconnects, while Huaguang Advanced Welding Materials may form a new growth curve through volume expansion in liquid cooling plate welding materials. For investors, the report points to two categories of beneficiary assets: domestic computing infrastructure and the domestic supply chain for liquid cooling materials.
Risks
- Risks from technological innovation and product iteration.
- Risk of raw material cost fluctuations.
- Demand for ai computing power infrastructure or growth in liquid cooling penetration may fall short of expectations.
- Progress of products such as supernodes and cpo silicon photonics switches from validation to mass delivery may fall short of expectations.
- The OCR text contains typos and numerical discrepancies; some earnings forecasts need to be verified against the original research report or company announcements.
What to watch
- The mass production, customer adoption, and order conversion of Unisplendour's supernode products.
- The progress of interoperability validation, poc, and mass delivery for the 51.2T cpo silicon photonics data center switch and the 800G optical module ecosystem.
- Whether H3C's revenue growth in domestic government/enterprise and international business can continue.
- Whether Huaguang Advanced Welding Materials can continue to raise the proportion of liquid cooling revenue, and the volume ramp-up pace of customers for precision solder sheets for cold plates.
- The industrialization progress of Huaguang Advanced Welding Materials' electronics products such as solder paste and other high-end products.
- The impact of raw material price changes on Huaguang Advanced Welding Materials' gross margin.